Promise by Tate sweetens investors

TATE & Lyle cheered investors yesterday by promising an update within weeks on the sale of businesses on the Continent.

The shares rose 29p to 573dp and was one of the FTSE 100’s highest risers.

The update will come earlier than expected. Analysts suggested a disposal of all, or part, of the European food and industrial ingredients operations could net about £350million and lead to the company buying back shares.

The sale will allow Tate to focus on value-added ingredients such as its sweetener sucralose.

The pledge came as Tate gave an update on trading since its profits warning in January due to poor sales of Splenda sweetener to soft drinks makers in the US.

“Trading has been in line with market expectations and has continued to comfortably exceed the corresponding period of the previous year,” it said.

“Sales and profits of Splenda for the year to March 31 are expected to only modestly exceed the prior year. We are continuing to work with our customers on product innovation.”